Calculating DTI

[erinbean28]

Hello,

I am curious - if my credit cards are all at a zero balance (and have been for 6 months) do I need to include their minimum monthly payment when calculating my DTI?

Thank you in advance!

Erin

[Revelate]

---

@erinbean28 wrote:

Hello,

I am curious - if my credit cards are all at a zero balance (and have been for 6 months) do I need to include their minimum monthly payment when calculating my DTI?

Thank you in advance!

Erin

---

Nope!

[RobertEG]

If the balance is $0, would the minimum monthly payment not also be $0?

[Revelate]

---

@RobertEG wrote:

If the balance is $0, would the minimum monthly payment not also be $0?

---

Typically that's what's reflected but some lenders still report a default minimum payment on the credit report; $0 balance CC isn't counted for mortgage DTI purposes from any lender I'm aware of from reports here at least, and Fannie/Freddie guidelines apparently agree though I haven't looked explicitly for that point.

[RonM21]

Have your cards all been reporting a 0% balance for that long?

[Peteyglad]

When I got my mortgage last October all that was counted was minimum payments on cards that reported a balance when they pulled my credit. I have heard of banks using a $25 payment as a minimum on all cards in your portfolio, but that was not the case for me. 

[Thomas_Thumb]

---

@Peteyglad wrote:

When I got my mortgage last October all that was counted was minimum payments on cards that reported a balance when they pulled my credit. I have heard of banks using a $25 payment as a minimum on all cards in your portfolio, but that was not the case for me. 

---

Agree - what you mention is my experience as well ^

The DTI calculations I have received considered minimum payment as shown on CC statements with non zero balances. No dollar amounts were assigned to cards which had zero balances.